People Smartz Blog

Is "Systematic" Coaching the real answer?

Thu, 19 Aug 2010 11:49:00 GMT

Recently I read a blog by a member of a large international coaching organization. In the blog, the writer quoted W Edwards Deming (a guru of quality management and credited with the rise of Japan as a world powerhouse in manufacturing after WW2).

According to the writer, in the quote, Deming said that “that 94% of all failures in a business are the result of the “systems” in the business and only 6% of the failures are caused by the people in the business.”

I agree with Deming, however I disagree with the blog writer (who even managed to spell Deming's name incorrectly) who basically then went on to use this quote to explain why systems over people will create “leverage” in the organization.

The basic fault with the article was that it was designed to promote a systematic version of business coaching that is more concerned with short term gains rather than long term ones. It is designed to encourage people to take a one size fits all approach to a business without taking into account the individual aspects of; or the people in, their business. In short, it was an article designed to inform about how to save time, create a picture of short term success and promote their product.

Now, I’ll be up front and say that my blog is designed to raise the profile of my business. I believe you were probably aware of this when you started reading; however my approach here is to ask you to think about the relationship between people and systems.

I believe that a business’s success is a result of the direct relationship between efficient systems and the people running them. Systems are not the end, they are the beginning of the real process – that of creating a long term viable business.

See if you agree with the following comments:

People run the systems, not the other way around.
People make decisions, not the systems (the system can guide them in the right direction but in the end it is the people who make the decision).
People create relationships with People, not with systems.
A business succeeds because of the drive of the people running it – the systems make sure they are all on the same road.

I am not writing here saying that systems are not important. In fact I believe they are important tools in maintaining consistency and quality, setting expectations and ensuring your business succeeds. The more systemized a business is, the more likely it is to succeed. Not because it is systemized, but because the systems create the time to concentrate on the important factors of business success.

The important word in the previous paragraph is “tool”. Because that is what a system is - a tool that assists you, and your team, to achieve business success. Imagine telling a carpenter that he didn’t build the shelf, the power drill did? Would he or she accept that? No way! It is the same with your business, you need the systems as a tool towards the end product – and success for your business is the end product.

But regardless of the systems you have in place, it is important to have the right people to run them. This means becoming very good at knowing who the right people are in terms of attitude, skills and abilities. Simply getting the right person in your organization, training them and working with them is probably one of the most important roles of a business owner or manager.

I know of one coaching organization that is so systemized in its recruiting approach that it advocates placing an answering machine on the phone, asking people to sell why they should get the job to the answering machine and then inviting the best answers to a “group interview” (Don't believe me - drop me a line and I'll give you the title of the book!) The designers of this "system" know business owners are time poor, they know that saving time is attractive - so they have come up with a system designed to “save time” not to select the right person. Ask yourself would such a system really work for your business? Would you be confident of selecting the right person?

In the last week, I have received a call from a client of one of the bigger coaching groups. They are looking for a business coach who is “people” rather than “system” orientated.

They commented that they had commenced coaching on the same week as another business run by a couple they are friendly with. They were in different capital cities, using a different coach from the same international coaching franchise.

The funny thing is that they had compared notes and found that the things they were being asked to do, the information they were being given and the advice they were being given was exactly the same – even to the point of them receiving exactly the same fax one day before a coaches visit on the same week of their program! What’s more, they both saw red when advised that all future coaching sessions would be over the phone to “save them time” – and that advice was given in the same week!

Maybe they were similar business you say? No - one was retail and the other light manufacturing, one had 120 employees, the other 15. One had been established less than a year, the other more than 10. In short, they were being coached via a system with no tailoring for their individual needs. Both companies are now in the process of finding a new coach. Why - because it was the system that was coaching them, not the coach.

To end this article, I would like to go back to W Edwards Deming. In his book “Out of Crisis”, he advocated a 14 point plan to save US industry in the 1980’s. While Deming was a big (read this to mean big) believer in systems, he was criticized for providing a set of goals (his 14 points) without providing any tools to make them happen. When asked about this by managers his reply was “You’re the manager, you work it out”.

And to end, another quote from Deming – “A system must be managed. It will not manage itself” (The New Economics for Industry, Government, Education (1993))

Seems even the quality guru, Deming, believed that business was about a relationship between people and systems....

I can only say that business coaching and consulting is the same. Think about this next time you look for a business consultant or coach – regardless of their specialty area!

P.S. I have made several comments and criticisms in this article, If you would like details of where this information has come from (i.e. links, books etc.) please contact me and I will be happy to provide (except where it would break client confidentiality).

Loyalty - is it right to expect it from employees?

Wed, 09 Jun 2010 05:44:00 GMT

A couple of days ago, I had a long conversation with one of my clients.

His lament was one I have heard before from business owners - that staff these days are no longer "loyal" to their employer.

There is an endless amount of research regarding the difference between generations, and the changing face of our workforce and really I don't intend to go into those in this blog - what I would like to talk about is an often missed part of "loyalty" - that of individual identity and identification.

Let me explain by using myself as an example - I spent a good period of my life in the Navy. If you were to ask who I was, I would say I was a "Sailor" - it is how I identified myself to myself. In fact, if I was talking to someone with a naval background I'd probably take this further and describe myself as a "Yeoman" - a title that would not mean much to people outside the Navy.

Now over the years, I have begun a new career, founded a company and been fairly successful in my endeavours. I truely enjoy the work I do, dealing with clients who are pursing their own dreams and goals. While my personal picture of myself has altered, there is still that element of my description which says "Sailor".

My point is that this personal identification has created in me a certain amount of loyalty to an organisation I left quite a while ago. In my mind, that recognition and loyalty is still there.

For Business Owners, it is easy for them to identify themselves with their business - after all they own it, run it and are responsible for its success or failure.

Sometimes it is hard for them to understand that their employees may not feel the same way about the business. But after all, if their employees have had no opportunity to "recognise" themselves as part of the business - what have they got to be loyal about?

Speaking to my client the other day, we begun discussing this in relation to his business. He is a very hands-on type business owner. For him, his employees are people who come in, do a days work and then leave - the business is his to run.

While talking, he begun to share some of his own experiences about when he felt the most loyalty to his own employers.

With this - he realised that he couldn't really expect loyalty from his staff if he was not offering them something to be loyal about.

I left him to think this over and consider what actions of his own were actually leading to the situation that was annoying him.

I'll let you know how he goes over the coming weeks.......

“We Don’t Need to Worry About That”

Tue, 27 Apr 2010 06:52:00 GMT

In my travels around businesses, I speak to a lot of businesses owners. One of the most frequent responses I get when speaking to them about the new industrial relations laws is the title of this blog.

“We don’t need to worry about that” is a refrain that I hear quite alot. The basic premise is that if they haven’t had a problem before, then they will not have one in the future.

As far as the industrial relations laws are concerned, thinking this way is not a smart move for business owners and managers. Over the last couple of months, I have seen an increase in the number of businesses calling me for assistance after having received a letter from the Fair Work Ombudsman regarding a complaint from an employee. On nearly every occasion, the business concerned had, until now, a belief that “We don’t have to worry about that”.

In a recent article, Judith Radisich from the Council of Small Businesses of Australia, in a response to a survey of small businesses said the following: “I am surprised that a higher proportion of small business respondents did not report complying with IR and OH&S laws takes up a higher proportion of their “people” time. Perhaps the main reason for this is that survey respondents don’t spend much time on compliance because the laws are simply too complex and virtually impossible to get on top of for most small business owners”. So, yet another reason for businesses to say “We don’t have to worry about that” – it is simply too hard to say otherwise!

One business I am currently working with has received two complaint letters and has been requested to provide payroll records. The danger for this company is that the complaint, if found correct, could result in a large amount of back pay being ordered that the company cannot afford to pay. Now the owners are not bad people, they have not set out to deliberately underpay their staff and are quite distressed that they may have. But even they admit that they thought “We don’t have to worry about that”.

The fact is that we have recently gone through one of the biggest revamps of industrial relations in a long time. When this is combined with an active workplace ombudsman (The Fair Work Ombudsman) with the power to order back pay, award fines and commence prosecutions then you have to wonder whether businesses can really afford to say “We don’t need to worry about that”.

Workplace Bullying - A Timely Warning for Businesses

Tue, 30 Mar 2010 09:39:00 GMT

Many thanks for this story to the HR Coach Network - it is a timely reminder for employers regarding bullying in the workplace and the possible effects of not having the appropriate measures in place.

A recent tragic case has highlighted the need for employers of all sizes to be proactive and vigilant in respect to bullying behaviour within the workplace.

The case involved the death of a 19-year-old cafe employee in Victoria, who committed suicide after more than 12 months of bullying at the hands of her co-workers. It was found that the victim was subject to constant taunting, criticism, name-calling and on at least one occasion had sauce poured over her clothes and hair.

In what is largely being regarded as a turning point for workplace bullying cases, the business was fined $220,000 for failing to provide and maintain a safe workplace and failing to adequately train and supervise its employees.

The presiding Magistrate said that the company had “tacitly approved” of the bullying behaviour. One of the company directors was personally convicted and issued a fine of $30,000. In a further landmark decision that has seen the liability for bullying extend beyond businesses to individual employees, three of the victim’s co-workers were convicted and fined a total of $85,000.

Combined with a recent survey indicating that nearly 1 in 5 workers has been subject to bullying, the case highlights the importance of employers and employees alike taking measures to prevent and eliminate bullying in their workplaces.

Australia's New Modern Award System

Wed, 24 Mar 2010 09:49:00 GMT

Australia's new Modern Award system is now nearly 3 months old. In that time, I have been dealing with small to medium sized businesses, assisting them in ensuring they are meeting the requirements of the awards and the National Employment Standards.

One of the comments that keeps coming up revolves around which award covers a particular business.

Now, this is really not surprising - there has not been a strong education process for small to medium sized business about the changes and most are not experts in industrial relations or reading awards.

Without going into great detail, some of the changes effecting small to medium sized businesses include:

The introduction of modern awards
The introduction of National Employment Standards
The move for most from state based to national based awards.

The introduction of Modern Awards has involved major changes for small and medium sized businesses. The process of introduction begun with a "modernisation" process which saw over 1200 awards reduced to approximately 120.

This process of modernisation has resulted in some broad classifications of employment, which for some business people is hard to understand. Once again, with such a large change, this is not surprising - the move to "modernise" awards has led to Modern Awards with very broad coverage and classifications need to be generic enough to allow this.

As an example of this, I was recently working with a business which found it difficult to actually identify the award their employees could be classified under. Going by the classification themselves, it was a difficult exercise, with none in the most obvious award (the General Retail Industry Award 2010) really fitting.

We were able to step our way through a process of identifying the appropriate award and classification, finally ensuring that their employees were employed under the appropriate award. This has allowed them to identify the changes they will need to make over the coming period as the transitional arrangements take affect.

To assist business people to identify their awards I am conducting a free webinar next Tuesday (30 March) at 1pm (Brisbane Time). Titled "Modern Awards and Your Business", the webinar will cover areas like identifying award coverage for your business and other practical areas.

If you would like to reserve your seat on the webinar - click on the following link:

https://www1.gotomeeting.com/register/675812345

New Workplace Laws - The Top Five Things Businesses Are Missing

Wed, 24 Feb 2010 11:17:00 GMT

Over the last two months, we have seen a huge increase in businesses requesting we conduct our free compliance check on their business.

The reason for this is the implementation of the new Modern Awards and the National Employment Standards. We are now seeing the effect of these new awards and standards on business and the additional burdens they involve.

Our experience with these reviews has enabled us to identify the 5 most common things we are seeing that businesses need to change because of the new laws.

Here they are (in no particular order):

1. Expectations of 40 hour working week - a 40 hour working week is not in accordance with the National Employment Standards. These standards set the maximum number of hours at 38 hours. Now there are ways businesses can continue to use a 40 hour working week providing their employees are better off overall. But these need to be agreed in writing through either individual flexibility agreements or a collective agreement.
2. Ordinary working hours not in accordance with the new Modern Award - the new awards may include a change to the hours used to define ordinary working hours. This means that from 1 July 2010, overtime or penalties may kick in at new times when compared to other agreements. These are subject to transition arrangements, but businesses need to be aware of the potential of extra cost here. Once again these may be changed by individual flexibility agreements etc.
3. Businesses still utilising State Awards - All Australian States (except W.A) have referred their powers for industrial relations to the Federal Government. This means that, except for state government employees, the vast majority of employers previously on a state award are now covered by new modern award. Businesses need to be aware and compliant with the appropriate award.
4. Lack of awareness of National Employment Standards - the National Employment Standards lay down the minimum standards of employment for all employees. By not being aware of the changes between the standards and their current practices, employers run the risk of being in breach of the standards. A couple of the most common things we are seeing are an unawareness of new work flexibility requirements and the altered termination and redundancy requirements.
5. Thinking they can ignore the changes - this is just not a smart business move, but a number of businesses are electing this option. I recommend if you are considering this, you visit the Fair Work Ombudsman website and read the press releases concerning the breaches they have identified and taken action against.

Should you be concerned about your business, or you want to check to made sure your doing things right - book yourself in for one of our compliance reviews today!

National Standard for Human Resources Released

Mon, 15 Feb 2010 11:36:00 GMT

In a world first, People Smartz, as part of the HR Coach Network, is pleased to announce the release of the first national human resource standard, Human Resource Framework NS HRF-101: 2010.

The first national human resource standard was developed by representatives of industry across Australia, New Zealand and Asia Pacific to provide the consistency and security in human resource practices that organisations now need. Based on four years of research by the HR Coach Research Institute, the standard is designed to suit the full array of organisations – profit, not-for-profit, government, private, large and small. Importantly, the standard is there to provide guidance to organisations. It is a voluntary standard to help organisations meet their obligations as well as to develop their employees to optimise their goals.

For organisations without a structured internal human resource function, the Human Resource Framework provides a simple and consistent method of managing people on an annual basis. The framework provides a guide to good human resource disciplines within the organisation, much the same as an accounting process.

To learn more about the new National Standard, download the White Paper Setting the Standard from our website

Welcome to 2010 - and Modern Awards!

Thu, 31 Dec 2009 23:46:00 GMT

Happy New Year!

Listening to the news last night here in Brisbane, the reports were on many new laws/changes being introduced in the new year. Bus Fares were going up, politicians were going to be paid more etc.

But there was not one mention of some of the most wide spread changes to the working lives of Australians. Effective today, Australia's new system of modern awards and the National Employment Standards (NES) will now govern the way businesses employ and manage their staff.

Over the past 6-8 months, I (and many others) have been seeking to raise awareness of these changes and urging businesses to prepare.

Today, the time for preparation is over - from today it is time to act......

If you haven't already identified your new award, it is time to do it.

If you haven't looked at the New Employment Standards (NES), it is time to do it.

If you haven't already identified the changes to your employment practices that will need to be made, it is time to do it.

If you haven't already put in place policies and procedures to protect your business, it is time to do it.

If you haven't already ensured your employment agreements are consistent with the new laws, awards and standards, it is time to do it.

If you haven't got appropriate processes in place to mitigate risk in areas such as harassment, discrimination, Health and Safety etc, it is time to do it.

If you haven't got a engagement plan for the unions relevant to your business, it is time to do it.

If you haven't got a plan for "good faith bargaining" and consulting with your staff, it is time to do it.

If you haven't looked into how to introduce flexibility into your business through "individual flexibility agreements", it is time to do it.

Not a bad list is it? And this is only the start!

For more information, visit the members section of our website today!

Christmas - A Time to Party or A Time to Beware?

Mon, 30 Nov 2009 04:55:00 GMT

End of year/Christmas Office parties - a great time to unwind, rub shoulders with workmates and other great antics. They can be a fun time!

But end of year parties have a very serious side as many of these antics lead to "regrets" after.

Recent research in Australia found that 70% of people believed that hitting the booze led to a more "personal" feeling amongst staff. Nearly a quarter of females interviewed admitted that their boss had made a pass at them at an office party.

Such behaviours can present many problems for businesses, particularly if the "antics" involved lead to a complaint from a member of staff regarding the behaviour of another.

It would be easy to say "no office party" or "its too risky", but sometimes the advantages of holding the party far outweigh the negatives. The decision to have or not have one is one for the business alone.

I would recommend a level headed approach to this years Xmas party - making sure the party is well planned and your staff are aware of the required behaviours before hand. This way you can have the fun while managing the risk!

To help you plan for your businesses party, download our Christmas Checklist today from our members section.

Businesses Need to Act Now!

Tue, 24 Nov 2009 07:40:00 GMT

Only 37 days to go until Modern Awards and the National Employment Standards take effect, use this time Now!

In 37 days, Modern Awards and the National Employment Standards will begin governing the working relationships of nearly all Australians. Recent legislation passed by state parliaments will see the Federal System of awards covering all private businesses in Australia for the first time. This is a significant step forward in Australian Industrial Relations. For the first time ever, we will be coming close to having a national system governing employment relationships.

At People Smartz we are working with many businesses getting ready for the changes. For many, the changes are small, for others significant. With the Fair Work Ombudsman releasing media statements daily regarding the investigation of small businesses for underpayments or breaches of the legislation, it certainly pays to ensure you are ready! (I invite you to visit the FWA website www.fwa.gov.au to see their press releases - some of the numbers are impressive!)

As an example - one change that we often see with our clients relates to working hours. There is exposure to real risk as some businesses have been working a 40 hour week, and the law puts in place a maximum 38 hour week.

We therefore recommend you look carefully at your business now. Some questions to ask yourself are:

How will the Modern Awards affect my business?
Are my contracts (employment agreements) up to date and consistent with the new laws?
Do my employment arrangements cover the 10 National Employment Standards
Do I have position descriptions? Do they fit in with the Modern Award?
Do we have a strong performance management system in place?

On the People Smartz website we have available for download an information sheet on the new laws. Our Forum area is also available for you to ask questions and seek advice for your business.

In addition, we have a number of services, such as our Free Compliance Review which you can take advantage of to assess your business.

The important thing is not to leave this until 1 January - check your business now!

The Gap Storms - 1 Year on

Mon, 16 Nov 2009 00:00:00 GMT

This morning I attended a "healing" breakfast at my son's school.

The breakfast was to remember the storm that hit our suburb, The Gap, one year ago today.

It is hard not to remember this storm. The scars of it resonate around our suburb still. A recent newspaper article stated a significant number of children are still receiving post-traumatic stress counseling as a result of the storm. Many houses are still being rebuilt and repaired and the people refer to life "before" and "after" the storm.

We were not expecting what was to come, the day had been hot and clear. When I first saw the storm I remember thinking it was just "wrong". Everything about it was "wrong" - it came from the wrong direction, it was the wrong shape, it was the wrong colour - it was just "wrong".

When it hit, it hit with a ferocity I can not recall seeing before. Having spent 21 years in the Navy, I have experienced many storms and on one or two occasions been very scared. This storm was worse than any of those I had experienced before.

Many of you will have seen the Energex advertisements on TV - those are shots of The Gap on this day last year. The wind howled and swirled and the rain came down in a sheet cutting off visibility to less than a foot or so. A river of water came through our house flooding half of it. Power was cut off and branches were falling off trees everywhere.

But my family, and the general area we live in, were lucky. Further into The Gap and in some neighbouring suburbs, the devastation was incredible. Whole houses destroyed, roofs torn off, houses flooded, schools and churches wrecked, mudslides and trees down everywhere.

I heard many stories that week from friends and acquaintances about their experience during the storm. One friend of ours spent the night huddled in her second story as a wall of water the height of her ceiling ran through the house below her (her house is still under repair today).  Stories of people having trees fall into the next room are everywhere and there is the story of the church group listening to a concert watching the storm rip off the roof above the pulpit as the storm hit.

The clean up took months. A terrific community spirit kicked in, people helping each other and digging in to make sure things got back on track. The early days were made difficult by a lack of power, blocked roads and the need to boil drinking water but slowly things begun to happen. Emergency Services personnel were everywhere and amazing.

My two boys school, Hilder Rd State School, was unusable for several weeks, every room was flooded and equipment wrecked. The whole school was bused around to other schools in the area for weeks and repairs to the school have still been continuing throughout this year.  It has been amazing to see the resilience and acceptance of the children to having no play equipment, computers or other resources while the these things were rebuilt and replaced. Recently, it was announced that the school was in the Top 5 in Queensland in the National NAPLAN tests - not bad for a school that was practically destroyed 12 months ago! It is hard to figure out who to congratulate first - the Teachers, the Parents or the Kids!

Most people outside The Gap have forgotten that we were actually hit by two storms that week. Three nights later we were hit by another torrent of water from the sky. It again flooded many homes and caused some major mudslides in areas already coping with damage. It was an event not needed by many residents!

Today, The Gap appears to have returned to normal. Its normal tree dominated, green environment surrounded by Taylor Range and Mt Cootha has returned. It is truly a beautiful part of Brisbane.

I believe, that in most circumstances, some good comes out of everything. In the case of The Gap, I believe this traumatic experience brought a suburb closer together and I think this is a thing we should all be grateful for.  It also taught us the importance of being ready for storms, of ensuring your house is protected and, most importantly, the importance of family, friends and neighbours.

Queensland Government Jobs Assist Program

Sat, 31 Oct 2009 08:37:00 GMT

People Smartz is proud to have been accredited as an approved consultant for the Jobs Assist Program.

The Queensland State Government is providing grants through approved Consultants for the delivery of advisory and mentoring services to businesses with 10 or more (full time equivalent) employees under the Jobs Assist programme.

The Department of Employment, Economic Development & Innovations (DEEDI) is providing the support intended to help businesses weather the current economic conditions. The financial loss and consequent unemployment caused by business failures is well understood. DEEDI is generously providing funding wherever such assistance is beneficial to sustaining businesses and the retention of employees.

Consulting assistance worth up to $8000 to each eligible business is provided in two stages:

Stage 1 - For the purpose of diagnosing the issues impacting upon an existing business and to develop an Action Plan to help owners addresses strategies and activities which improve the business model.

Stage 2 - For the purpose of engaging a consultant to mentor and provide expert advice with implementation of the priority tasks identified in the Action Plan. The outcomes sought are increased efficiencies, business sustainability and an increase in overall productivity.

Eligibility Criteria

The businesses accepting the assistance must meet the following criteria:

Employ 10 or more full time (equivalent) employees;
Have an established operating base in Queensland;
Have an ABN and be registered for GST; and either
Be located within a Local Priority Employment Area under the Federal Government Keep Australia Working Strategy; OR
Fall within key sectors considered critical or of strategic importance to the State, region, industry or sectorial supply chain.

To find out more about eligibility or to apply please contact us for more information today!

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Latest Research - Business Preparing for Growth

Fri, 16 Oct 2009 11:07:00 GMT

The HR Coach Research Institute has released its latest quarterly research into employment confidence in the business sector.

The research indicates that positive signs are beginning to enter into the minds of business owners and preparations are being made for an economic recovery. Because of this there is a focus on short term business improvement strategies in readiness for the growth.

The following is quoted from the results of the research:

"The Institute has identified that in anticipation of an economic rebound, businesses are moving into preparation mode.

The top 3 critical issues facing business have remained the same over the past year – Lack of Work or Sales, Cash-Flow and the Economic Climate.

With an improving expectation of growth in sales and profitability, businesses are looking to resource this trend with increased participation of employees as well as the recruitment of new employees. Concern in relation to finding and keeping talent could see an increase in wages bills – both through an increase in hours of part time employees, and rates of pay for full time employees. This may address the labour underutilization rates that have increased in the past year.

With a low expectation of investment in capital expenditure, businesses are maintaining a short term view in relation to return on investment strategies. This will drive business improvement strategies; building on core business rather than innovation.

As internal organisational confidence continues to decline, businesses will need to focus on internal processes. Businesses will most likely be addressing orientations, workplace and legislative policies in the coming months. This may trigger a resurgence of quality management systems in the market."

The full report on this research is available from the People Smartz Members area. To download - click on the link below:

HR Quarterly Index - October 2009

Independent Contractors - Benefit or Risk to Your Business?

Mon, 12 Oct 2009 23:07:00 GMT

Laws regarding the use of Independent Contractors have been around for quite a few years now. These laws are designed to provide increased protection against employers who try and avoid their employment obligations by using what are called "Sham" agreements.

Independent contractors run their own business and should be free to negotiate their fees and working arrangements. They may provide their services to any number of clients.

Employees have set minimum entitlements (payment of wages, annual leave, personal leave etc) and are subject to the control and direction of their employer.

A "sham" agreement occurs when an employer deliberately disguises an employment relationship as an independent contracting arrangement in order to avoid paying an employee his or her entitlements. It is possible that an employer who makes arrangements in this way could be fined up to $33,000.

Many businesses I work with enter into independent contractors agreements in order to "benefit" both the business and the person doing the work. There is no intention to deceive or avoid obligations - just an intention to "do the right thing by all" by improving the return to the "employee" and to save the company money.

Unfortunately, this could be opening up a minefield for the business and the independent contractor. If the arrangement has been made with the intention of avoiding obligations on the businesses part, it can result in fines, back taxes and other costly penalties. There can also be tax ramifications for the independent contractor.

When reviewing whether the working relationship is one of employment or independent contract, the Fair Work Ombudsman will look at the circumstances. Things such as how the work is performed, who bears the commercial risk, whether the work is results based or not, who sets the hours of work, whether the individual has a right to delegate work and who provides the equipment used are some of the many factors which can be taken into account.

I strongly recommend to my clients before entering into independent contractors arrangements that they closely review the relationship they are forming. While the benefits of utilising independent contractors are significant, if not structured properly, they also introduce an element of risk to the business.

People Smartz is able to assist businesses with the process of employing independent contractors. If you have, or are considering, independent contractors in your business - contact us today.

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New Modern Awards Released - Have You Checked Yours Yet?

Tue, 29 Sep 2009 05:02:00 GMT

The Australian Industrial Relations Commission has been releasing over the last couple of months the new Modern Awards to cover employment within Australia from 1 January 2010 .

The process is continuing and by the time January 1 comes along, all employees under $108,000 per annum will be covered by one of the new modern awards. This includes professional occupations who previously had not been covered by an award - some of them under a new "catch-all" award created for the purpose of ensuring they are covered.

While not all the awards have been released, a list of the one's released so far (with a copy available for download) is available from http://www.airc.gov.au/awardmod/fullbench/awards.htm

I would strongly recommend that you review this list and download the award applicable to your industry. From 1 January 2010, when the awards become effective, you will be required to be complying with the award applicable to your business. The time to start preparing is now not on 31 December!

The businesses I am working with on preparing for the new awards vary in the amount of work they need to do to prepare for the changes. It really does depend on the individual business.....

If you want to know more, as well as a suggested list of activities you can undertake to help yourself prepare for the changes - visit out website by clicking below and downloading our information sheet.

Australia's New IR Laws - Information Sheet

If you have any questions about the changes, please feel free to contact us or post a question on our forum page! Our forum is also hosting a discussion on what effects you believe the new laws are going to have on your business - why not give us your thoughts today!

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The People Smartz Forum

Does Business Need Access to HR Advice?

Thu, 17 Sep 2009 04:52:00 GMT

It should come as no surprise that the latest research is indicating that Australian businesses are "under threat due to the increasing complex economic and labour market".

The latest white paper released by the HR Coach Research Institute talks to the maturation in professional services to Australian businesses in most professional areas (for example legal, accounting, sales and IT). Titled "The Business of the HR Crisis", it discusses the effect a lack of effective people management practices is having over an estimated 651,000 businesses.

Some of the conclusions in the white paper include:

The effects of uncertainty on the confidence of employers and strategic direction;
The increasing management fatigue beginning to be seen due to down-sizing of workplaces
The effect on small businesses of not being able to attract or retain employees
The effect of struggling with paperwork and compliance
The compounding effect of industrial relations and Health and Safety legislation changes.

The cost of labour is the biggest cost on most businesses. This cost is exacerbated by the inability for business to have access to effect people management advice and solutions. This white paper discusses this in detail and delivers a conclusion which is not only interesting but in line with our People Smartz philosophy that "People Drive Results".

I highly recommend downloading the full white paper and would be interested in hearing your comments through our forum. If you don't have a membership (it's free), please register.

> Download the White Paper

> The People Smartz Forum

The Decision to Recruit - a numbers game or an opportunity?

Fri, 11 Sep 2009 04:15:00 GMT

Is recruiting simply a matter of picking the a person and filling a number in your business?

I have been working with a number of clients over the last couple of weeks helping them recruit for a new team member. On each occasion, their initial request has been "we need to recruit a admin person (or sales person, or account manager or whatever).

When working with these businesses my first question is a simple one - "what opportunities does this vacancy present for you?".

A vacancy in a business is an opportunity to improve your business. You have the opportunity:

to look at your current practices to see if you can improve them,
to look at your team and correct any weaknesses that may exist,
to look at your structure and perhaps redefine the role to improve business development; and
to revitalise your business through the introduction of new and different experience and attitudes.

One client I have been working with has a number of sales people in his team. Over time the sales team has been performing well but there has been a drop off in lead generation. My clients initial thought was to replace the sales person who is leaving with another sales person. After I had worked with him for a period, he realised that he could replace the sales person with a person (or person's) who could concentrate on the marketing and lead generation aspects of the sales process. The opportunity was there to correct what could have been a serious concern going forward and provide an avenue for further growth.

The above situation doesn't apply to every business. In businesses with high turnover (such as hospitality) we are basically looking at a numbers game, but this doesn't mean an opportunity does not exist to improve your business! Another client took advantage of the opportunity created by a vacancy to upskill her existing team and improve their overall ability to service the customer. The overall effect was cost neutral but had a significant effect on return customers - a win for the business, the team members and the customer!

So next time you are looking at filling a vacancy in your business, turn the question around from one about numbers to one about opportunity - it could have some very positive effects.

As always if People Smartz can help you - let us know!

Contact

Expectation Management - You do it for customers, why not employees?

Thu, 03 Sep 2009 06:49:00 GMT

Sometimes the fundamentals of business are the same whether you are looking internally or externally. Unfortunately sometimes we don't realise it!

We work hard on making sure our customers know what they can expect of us, when we will do things, when we will do it by, who will do it etc. We put this information into writing and ensure that their expectations of us are clear. If we have expectations of them, we make them clear as well - for example, when we expect them to pay the invoice by! It makes sense and makes for good and happy customers!

The same can be said for our own team members. Often when dealing with performance issues in business, what I see is a mis-understanding in regards to what is expected of the team member with a differing expectations on both sides of the equation.

So like with our customers we need to work on expectations with our team. So how do we do this?

First, there is the basic aspects of establishing the expectations of their behaviours and performance. These are the sort of things that are covered in employment agreements, position descriptions, policies and procedures. Not only do they cover the idea of what the job is, they also lay out the your expectations of what is acceptable in regards to dealing with other team members, management, customers and others. To have these documents in place puts you one step ahead in the expectation management game.

The next step is ensuring you have good strong two-way communications structures in your business. Regular meetings with your team and feedback sessions (formal or informal) are good ways to begin this process. Having a regular, proactive and systematic performance management and development systems also aids your aims in this area by putting in place forward looking goals and targets for your team.

Ensure your team are aware of your goals for the business. Unless it is commercially sensitive, don't leave them in the dark about where you are taking the business and make sure they know how they can help you achieve this. Think about how you can bring them into the game.

Finally - do you know their expectations of you?? What is it they want out of work? What gets them to work every day? By finding out about these expectations, you can find ways to encourage them to achieve their own goals - its not only about your success, its about their's as well....

So think about how you can become an expectation manager with your team!

Contact us if you would like any information on how People Smartz can assist you and your team achieve your expectations!

Contact

One Important Key To Managing People

Sat, 29 Aug 2009 22:57:00 GMT

Over the last couple of days I have been assisting a business owner with a problem that had happened with one of his team members.

Now I will not be going into detail about the situation, that would be breaking confidentiality - but I will share one thing that occurred to me while I was with them.

Many years ago, I read (and attended a course on) Stephen Covey's Seven Habits of Highly Effective People. One of the seven habits was "First seek to understand and then be understood".

Well, this situation would probably have been helped if both sides had taken the time to follow this habit! I am not saying that either side was at fault, the truth is that if they had taken the time to understand what the other was saying, they would have found they were saying basically the same thing! In other words they were disagreeing over something they agreed on!

Some sort of conflict can arise in any relationship - we all know that. In business, when they occur and the business owner is involved they can take a momentum of their own if not handled promptly. This was an example of one such occasion.

The first rule I explain to business owners in these situations is to keep their mouth shut and "listen". This is followed by asking questions to ensure they understand what is going on in the mind of the team member and then act to correct the misunderstanding or incorrect performance.

This approach has the advantage of defusing situations, opening dialogue and giving team members the opportunity to feel they have been listened to. It also gives the business owner (or manager) the ability to get their side understood in a more effective manner by helping them clear away the "noise".

It is an approach which is, in essence - "Seek first to understand and then be understood". From my experience, I can tell you - it works!

People Smartz can assist you with your team, helping productivity and efficiency and introducing good "habits" to your organisation. Contact us today to find out how we can help you and your team.

Why Business Owners Need More Time

Sat, 29 Aug 2009 22:58:00 GMT

You will have seen me write before that the two things business owners need more than any thing else is cash flow and time.

Today's blog is all about the later - time. Now in researching today's blog, I found many documents, reviews, white papers about time management - making lists or setting goals. While it was tempting, this is not what this blog is about!

From my experience, business owners are always on the move, busy working on this part of the business or that, making everything work on a day to day basis. This is how it was when he or she first started the business on their own and what they have become used to.

But in order to grow a business, the owner needs to move out of the day to day - if they do not devote some time to the future, then they will be forever stuck in today.

Time is often the first area a coach needs to begin with a business owner. For it is the creation of time that creates opportunities for business growth and increasing cash flow...

So how does a busy person find more time? Well simply it is not possible to find more time! It is a scarce resource with only a certain amount of it available - and the time you do have has many conflicting priorities pulling on it!

If time is scarce, then it is time to start looking for ways to make your use of time more efficient. For many business owners, identifying the work they do which could be done by others (or not done at all) is often the first step in this process. It is all about looking for the way your business can run more effectively, whether by using others, automating a process or just changing the way you do things.

This is not a hard process to begin yourself - if you can find the time to do it! Bit of a Catch 22 isn't?

So if you want to grow and develop your business, start thinking about time - not in terms of lists but in terms of outcomes, effectiveness and how you can devote some of it to the future. People Smartz Coaches can assist you in the process by providing you with an experienced perspective of your and your peoples activities. Contact us

The Cost of Non Compliance

Sat, 29 Aug 2009 23:01:00 GMT

This will be a short blog entry but probably the most important you will read!

Australia's new IR Laws come with a kick. If you are non compliant you can be fined and forced to pay back pay, credit accruals, pay additional superannuation guarantee payments and additional pay roll tax - and that is only the start of the list!

Here are some examples of the ramifications if your business is found to be non-compliant:

Non Compliance with Modern Award Conditions - a fine of $33,000 for a company for each breach plus the cost of back wages etc to the employee.
Non Compliance with National Employment Standards - a fine of $33,000 for a company for each breach plus the cost of making up the breach to the employee.
Avoidance of Employment Obligations (Sham Contracting) a fine of $33,000 for a company for each breach plus back taxes plus superannuation guarantee payments plus possible implications for payroll tax.
Unfair Dismissal - back wages if found to be an unfair dismissal plus possible superannuation to the employee. in addition, legal costs and lost opportunity costs in regards to time and effort to defend the claim. Cost = many 000's of $$$.

The cost of being compliant is minimal compared to the costs of being caught out!

Contact us today to arrange for a Free Compliance Assessment for your business.

Why You Need a Business Coach?

Sat, 29 Aug 2009 22:51:00 GMT

So why do I need a business coach? Why do I need a HR Coach? Why do I need a coach at all?

These questions are fired at me fairly regularly and I would like to take the time today to explain why!

First - Coaching is not consulting. Consulting implies that you identify a problem that a client has and you propose a solution. Coaching is more about assisting your to help yourself.

There are many other reasons for working with a business coach, but here are just a few:

Working with a coach is an investment in you and your business. Your business is about your future and you need to have your time and energy concentrated on the important areas of growing your business.
The purpose of working with a coach is to guide and encourage you to achieve your goals. A coach will insist on excellence and guide you towards the desired outcomes through the development of a well structured and tailor made business plan.
A coach will help you identify the areas of waste in your business, where your time is being used ineffectively and assist you in correcting these areas.
A good coach will have experience in identifying the right people for your team. The individual's fit into the team is as important as their technical skills.
Your coach will look to assist you in developing your sales funnel through targeted sales and marketing processes and activities.
Because coaching is not consulting it is more cost effective by building the internal resources within your company.

There are many coaches out there with their own specialities. Some concentrate on sales, others on marketing, others on strategic direction. The choices is yours about which is the most suitable for your business.

People Smartz believes that regardless of the specialty area, it is the people involved that produce the results. This is why our coaching is designed to identify the ways your business can achieve success through people. With People Smartz Coaching you are investing in you and your team - not a process.

For more information - contact us today.

> Learn more about People Smartz Coaching Programs

What is the BOOT??

Sat, 29 Aug 2009 23:03:00 GMT

One little known part of Australia's new industrial relations laws is the BOOT. No, this is not way to get rid of troublesome employees by using your Size 9's (or whatever size boots you wear)! Instead it is an abbreviation for Better Off Overall Test.

The new laws allow for award conditions to be varied on an individual basis as long as the variations result in the employee being better off overall when compared to the award conditions.

What does this really mean? Well it means employers and employee can agree to more flexible conditions providing the BOOT is passed. However, it also creates some problems for employees leading up to 1 January 2010 when the BOOT comes into effect.

On 1 January 2010, a new safety net will be coming effective for all national system employers. This safety net will comprise new Modern Awards and the Minimum Employment Standards. New modern awards will cover all employees under a threshold which is roughly $100,000.

If you currently have employees on agreements (or AWA's), come 1 January 2010 these agreements will need to pass the BOOT. If they do not you may be in breach of the award covering your industry or the minimum employment standards. This may result in investigations by Fair Work Australia and/or relevant unions and significant costs to your business in fines, backpayments and time.

So what do you need to do? First you need to review your agreements to ensure they are compliant with the new minimum standards. Then you need to alter your practices to ensure you will be compliant by 1 January 2010.

Leaving this until 1 January 2010 is not the right thing to do! From January 1 if you are not compliant you are in breach of the legislation and an employee or union may report you for the breach.

So be aware of the BOOT - start looking at your agreements and systems now! People Smartz are currently offering free employment compliance reviews to businesses. These reviews will identify for you the areas you may need to act to protect your business.

Why You Should Have Employment Agreements in Your Business

Sat, 29 Aug 2009 22:56:00 GMT

I am often conducting compliance reviews for small to medium sized businesses. These reviews are designed to identify any issues that may be placing a business at risk in regards to the many legislative areas that govern employment in Australia.

This is a large area - we are dealing with laws in industrial relations, Health and Safety, Discrimination, Equal Employment Opportunity, Independent Contractors and the list could go on.

For a small to medium sized business remaining compliant in an ever changing legislative environment is almost a full time job! This is highlighted in the reviews I do, where I am yet to find one business that is fully compliant.

The most common area I need to address with business owners is the lack of employment agreements. These agreements describe the employment relationship and are essential for establishing the expectations of both parties in their relationship.

In Australia, a common excuse for not having agreements is that the employee is employed under an award and that is sufficient. Unfortunately, it is not!

An award covers the minimum standards for employment. It does not contain any clauses for the protection of the business, nor does it assist in the maintenance of standards within the business. It is designed to protect the employee not the employer.

To explain this I often say to my clients the following: "if you were establishing a relationship with a client, would you ensure that your expectations and their expectations were clearly defined and easily understood". For the majority of my clients the answer to this is "Yes". When I follow on with the question "well, why shouldn't it be the same with your employees?" - the penny finally drops!

Another major reason for having employment agreements is for the protection of your business. Clauses should be inserted regarding things like confidentiality, the protection of intellectual property, protection of client lists and employees responsibility to obey company policy. These and other clauses are essential protections for your company and are definitely not contained in an award.

At People Smartz, we are more than happy to assist you in putting employment agreements in place for your business.

Contact us to discuss your requirements.

If you already have agreements in place, we currently are offering free compliance reviews for small to medium sized business which include a review of one of your employment agreements.

Book your compliance review today.

Why are Business Owners willing to risk their business??

Sat, 29 Aug 2009 23:05:00 GMT

Yesterday, while I was talking to a business collegue, she made a good comment - "why are business owners so willing to accept a risk when it is so easy to fix".

This comment got me thinking. I am meeting with business owners everyday and I see them making such decisions. For most it is simply a matter of whether they can afford to fix the problem or not - regardless of the level of risk.

The question for me is whether they are asking the right question.

Now we all know that the level of risk is a combination of the likelihood of something happening and the consequences if it does occur.

It worries me that businesses often do not protect themselves against a risk until they actually get caught out by that risk. When that happens the cost is often substantially more than than any risk control would have cost proactively.

This is particularly relevant with employment and workplace risk. Business owners can be reluctant to take measures to protect their business when it comes to their employees and their employment.

I am yet to find an business owner who has not taken measures to protect their business against theft, fire, public liability etc. Policies for these are in place and renewed annually. When dealing with clients they ensure that their and their clients expectations are managed through appropriate agreements and procedures. In short, in these areas, they manage their risk.

However, the number of business owners who do not manage the risks in employment should be a concern. It is not unusual for me to come across businesses:

Without employment agreements and other tools to manage expectations (such as position descriptions).
Who are unaware of the appropriate award or agreement for use in their industry
Without appropriate OH&S practices
Without appropriate policies and procedures in regards to legislative requirements
Who do not understand the unfair and unlawful dismissal laws
Who do not understand the risk and cost of employee turnover.

This list could go on. The truth of the matter is that the cost of a breach of any of the above would far out weigh the cost of implementing easy processes to alleviate them.

In that respect, the question should not be "can I afford them", it should be "can I afford not to have them controlled".

At People Smartz, we are currently offering a Free Compliance Review for businesses to enable them to assess their levels of risk.

The Cost of Losing Employees

Sat, 29 Aug 2009 23:06:00 GMT

I have met with a potential client in the last couple of weeks, who was not concerned over the level of turnover he was experiencing in his business.

His turnover levels were around 50% a year and he had managed his business on this sort of rate for many years - his comment to me was that it was just what happened in his industry.

Well a little bit of research did tell me that turnover was high in this particular industry, but 50% was almost double the industry average!

Unfortunately for this gentlemen I needed to point out to him the cost of this turnover to him in time, effort, experience and, of course, profit. When they were calculated, to say he was shocked is an understatement!

The actual cost of replacing an employee can be calculated at somewhere between 50% and 200% of an employees salary. This amount is a result of the time and effort required for recruiting (advertising, shortlisting, interviewing, time for all of the above), the loss of productivity, the cost of training new employees and many other, incidental, factors.

But high turnover can also be an indicator of other problems with your business - and with the cost of replacing employees, these can not be ignored!

Some hints for improving your turnover rate are as follows:

Hire the right people - not just in terms of qualifications or experience but also in terms of motivations and values. Attempt to ascertain the drivers of your potential employee prior to employment and make sure you can meet them before offering them a job.
Remember those motivators as you deal with them during their employment - these are the things that are going to keep them interested. For example - people who are goal/career motivated need to be treated differently to people seeking security.
Our workforces today are more mobile - acknowledge this and find ways of making it work for you. If a person feels it is time to move on, then find ways to make it easy on you and them.
Find ways to improve communication and continuously improve the workplace. Keep your employees engaged by involving them in developing their own goals and targets. Communicate your goals and targets for the business - don't keep them in the dark!

Reducing turnover is a long term goal but worth it in terms of your time, effort and profit. If you require assistance, People Smartz can provide you with a number of services to improve your results. Contact us today!

People Driving Results

Sat, 29 Aug 2009 23:07:00 GMT

It suddenly occurred to me that the one blog I had not written so far was the one about our People Smartz tag line "People Drive Results".

The one thing every business has in common is that people are involved. Whether we are talking one person hanging out their own shingle or a company with 100's of employees - people are always involved.

Regardless of the business, regardless of its purpose, it is people that make things happen and it is people that work to make that business a success. It doesn't matter what tools you put in place, what processes they follow or who they are, it all comes back to the people who work in and on the business.

On Monday, I attended a seminar and met a gentlemen who ran his own company in landscape design. Now I will admit, I have two brown thumbs, but this man even had me excited about his company, his industry and him! He was a perfect example of "people drive results". Regardless of the tools, regardless of the processes, regardless of the client, it was he who made the company what it was - a successful business.

I meet many businessman who spend money on new software programs, consultants, marketing programs etc. These are all essential and important to the productivity of their company and should not be forgotten. But when I start talking to them about the ways they can improve on the gains from this further by spending money on their people many look at me like I am delivering something astonishingly new!

The most basic asset of any business is the people, the area where the most gain can be made is through people and the most cost effective way of having a successful business is through developing yourself and your people.

Yes - regardless of the business, it is people who drive results. Why not talk to us about how we can help you drive your business? Contact People Smartz today.

Business Growth Expectations Rising

Sat, 29 Aug 2009 23:09:00 GMT

The HR Coach Research Institute has released its latest quarterly index of business in Australia.

The HR Quarterly Index provides a summary of employment confidence in the business sector. The Report identifies a rebound in business confidence; however businesses need to be aware of management fatigue.

The 3 critical issues for business has remained the same over the past 3 quarterly results – Lack of work or sales, cash-flow and economic climate. Participation rate of employment is being upheld with the increase in part time employment – indicating that businesses are shedding hours, not jobs. This is a healthy indicator for long term sustainability of knowledge and skills in hope of a turnaround in the market.

Businesses are in need of clear communication strategies internally and management structures. This is placing pressure internally on the employment relationship in the current market.

Employers are concerned about employee focus on the job at hand. Employees are looking for direction and clear planning with communication relating directly to the individuals future.

Management fatigue is currently critical for both employers and managers as they navigate through managing in uncertain times.

All these factors combine to provide business with a great opportunity to create a competitive advantage through their people. Contact us today!
> Download the HR Quarterly Index July 2009

No Minimum Wage Rise - Should we be surprised???

Thu, 09 Jul 2009 06:19:00 GMT

Over the last two days we have seen one of the final institutions of Work Choices demonstrate one of the basic differences between Work Choices and our new Industrial Relations laws.

The Fair Pay Commission has decreed that there will be no increase in the minimum adult wage. The Fair Pay Commission is a Work Choices Institution given responsibility for the setting of minimum wages etc. When making decisions regarding minimum wages, the Fair Pay Commission is required under the Work Choices Legislation to take into account the economic effect of any wage increase on the Australian economy. It is also required to take into account the effect of tax cuts or additional family payments that may have occurred in the period since its last decision.

Given the current economic environment, the raising level of unemployment, recent tax cuts, the introduction of stimulus handouts etc it is not surprising that, given its legislative instructions, the Commission decision was for no increase at all. It was felt that increased wages would result in additional pressure on small business with an increase in the unemployment rate likely.

The new wage setting body, Fair Work Australia, is beginning now to look at Modern Awards for implementation from 1 January 2010. It will also be responsible for setting the next minimum wage increase. Fair Work Australia’s main objective in this regard is to “establish and maintain a safety net of fair minimum wages”. In performing this objective it must also take into account the performance and competitiveness of the national economy.

It remains to be seen how the new body will operate in this respect, but judging by the reactions of the two different sides of politics and industry it’s going to be an interesting ride....

Drive Your Business Forward - Not in Reverse!

Sat, 29 Aug 2009 23:12:00 GMT

In a lot of businesses, appraisal time is one of tension and sometimes confusion.

At times, employees are surprised to be told about "issues" which have been around for a long time, but have not been addressed.

Manager's are stressed because they have to sometimes handle unpleasant realities. They are further annoyed by the amount of time the appraisals take them away from their "real job".

It is particularly stressful for everyone when a person's salary,commission or bonus has a dependance on the appraisal.

In such organisations, the appraisals are a time to look back on performance and as a result what develops is a reactive approach to business and individual development. Appraisals are seen as a chore that "most be done".

It has been well know for many years that such an approach is basically bad for business for all these reasons and more. Where this is occurring, or where there is no process at all, business owners and managers are missing a great opportunity for driving their business forward.

By initiating a proactive, goal orientated performance management system (rather than backward looking appraisals), business owners and managers can drive activities to achieve strategic aims. Individual and business progress towards goals can be monitored and communicated ensuring everyone is aware of this progress. Corrective action can be taken to address performance, knowledge or experience issues as they are identified. In the end, everyone is what is expected of the business as a whole and themselves as individuals.

More importantly - once a year appraisal time becomes an all year round, "the way we do things" process which is forward looking and driving the business.

Doesn't that sound like the right way to do things?

Such systems are not the domain of big business or corporate. In fact in small to medium size businesses the development of such programs can have impressive impact, encourages participation and spreads out accountability throughout the business. This is particularly important in small business where the owners are always spread thin!

At People Smartz, we can help you develop a system suitable for you business, regardless of size or industry. As an added extra, our coaches can further assist you in the implementation by coaching owners and managers in how to deal with performance and productivity issues as they appear.

Learn more about our HR Coaching Programs and then contact us for assistance!